Chapter 14

Consumer Decision Making I:

The Process

Consumer Behaviour
Canadian Edition
Schiffman/Kanuk/Das
Copyright 2006
Pearson Education Canada Inc.

Levels of Consumer Decision

Making
Extensive Problem
Solving
Limited Problem
Solving

Routine Response
Behaviour
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Factors That Affect the Type of

Decision Making Process Used
Importance

of the decision
Extent of previous experience
Existence of well-established decision
criteria
Amount of information at hand about each
alternative
The number of alternatives available
Model of consumption being followed
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Consumer Decision Making The

Process
Need

Recognition
Pre-purchase Search
Evaluation of Alternatives

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Need or Problem Recognition

The

realization that there is a difference

between actual and desired states
The higher the gap, the stronger the need (or
bigger the problem)

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Types of Problems
Active

Versus Inactive problems

Active: those you are aware of

Inactive: those that you are not yet aware of
(but exist)
Those

that require immediate solutions and

those that do not require immediate
solutions
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Problem Recognition and

Marketing Strategy

Identify existing consumer problems and find

solutions for these
Lower the actual state
Increase the desired state
Increase the importance of the gap between actual
and desired states
Convert inactive problems to active problems
Convert problems into ones requiring an
immediate solution
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Pre-Purchase Search
Types

of Information Sources
Types of Information Sought
Factors Affecting Extent of Information
Search

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Figure 14-3: Types of

Information Sources
PERSONAL

IMPERSONAL

Friends
Neighbors
Relatives
Co-workers
Computer salespeople
Calling the electronics
store

Newspaper articles
Magazine articles
Consumer Reports
Direct-mail brochures
Information from product
advertisements
Internal web site

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Types of Information Sought

Brands

or alternatives available
Evaluative criteria to be used
Generally, product features
Ratings

of brands on evaluative criteria

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Factors that Increase the Level of

Pre-purchase Search
Product

Factors: Higher search when

It is a long-lasting or infrequently used

product
There are frequent changes in product styling
Large volume is purchased
The price is high
There are many alternative brands
There is much variation in features
continued

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Factors that Increase the Level of

Pre-purchase Search
Situational

Factors: Higher search when:

Experience is lower
Previous experience was unsatisfactory
Social Acceptability:

Higher search when:

Purchase is a gift
Product is socially visible in use
continued

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Factors that Increase the Level of

Pre-purchase Search
Value-Related

Factors: Higher search

when:
Purchase is discretionary
All alternatives have both positive and
negative qualities
No agreement among users exists
Conflicting information is available
Other considerations exist
continued

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Factors that Increase the Level of

Pre-purchase Search
Consumer Factors:

Higher search when:

Consumers are well-educated, have higher

income levels and are younger
Consumers are low in dogmatism and risk
perception
Level of involvement is high
Shopping is seen as an enjoyable activity
continued

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14-16

Evaluation of Alternatives Types

of Consumer Choice Processes
Affective

choices

More holistic; an overall evaluation

based on how one feels about a purchase
Attribute-based

choices

Have pre-determined evaluative criteria

May require both external and internal search
Complicated decision rules may be used
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Nature of Evaluative Criteria

Can

be tangible or intangible
Include surrogate indicators
Attributes that are used as indicators of another
attribute
Are

often ranked in order of importance

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Consumer Decision Rules

Procedures

used by consumers to facilitate

brand or other consumption-related choices

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Consumer Decision Rules

Compensatory

Brands evaluated in terms of each relevant

criteria and the best brand (or one with the
highest score) is chosen
Non-compensatory

Positive evaluations do not compensate for

negative evaluations

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Non-Compensatory Consumer
Decision Rules
Conjunctive Decision Rule

Product attributes are identified

a minimally acceptable cutoff point is
established for each attribute
brands that fall below the cutoff point on
any one attribute are eliminated from
further consideration.
continued
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Non-Compensatory Consumer
Decision Rules
Disjunctive Decision Rule

consumers identify product attributes

establish a minimally acceptable cutoff
point for each attribute
accept the brand that meets or exceeds
the cutoff for any one attribute
continued
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Non-Compensatory Consumer
Decision Rules
Lexicographic

Decision Rule

Product attributes are identified

Product attributes are ranked in terms of
importance
brands are compared in terms of the attribute
considered most important
Brand that scores highest on the first attribute is
chosen
If there is a tie, the scores on the next attribute
are considered
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Issues in Alternative Evaluation

Lifestyles

as a Consumer Decision Strategy

Incomplete Information
Non-comparable Alternatives
Series of Decisions
Consumption Vision
Mental picture of the consequences of using a
particular product

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Coping with Missing Information

Delay

decision until missing information is

obtained
Ignore missing information and use
available information
Change the decision strategy to one that
better accommodates for the missing
information
Infer the missing information
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Information Search and

Marketing Strategy
Get

products into consumers evoked set

Limit information search if your brand is
the preferred brand
Increase information search if your
alternative is not the preferred brand
Use point-of-purchase advertising
effectively
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Alternative Evaluation and

Marketing Strategy

Identify decision rule used by target market and

use suitable promotional messages
Influence the choice of evaluative criteria
Influence the rating of your product on evaluative
criteria used
Use surrogate indicators effectively
Use consumption vision
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